The Expansion Of Frontier Model Essay

The Expansion Of Frontier Model Essay

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There are several pieces to the puzzle when it comes to the Production Possibility Frontier model. The first most important thing to understand about this graph is what a production possibility frontier (PPF for short) actually is. Essentially, a PPF is the curve (line) on the graph that demonstrates the place where a two-good economy is the most efficient in its production of, for example, smartphones and computers and is usually constructed on the basis of inputs and outputs (Afonso, 2013, p. 4488). The graph below is a visual representation of what the PPF looks like in action between the smartphones and computers. As you can see, the horizontal x-axis is the computers and the vertical y-axis is the smartphones. In this example the most computers that can made by using all the resources is 85 total computers. Also, the most smartphones that can be made are 20 total smartphones. From this information we can already gather a lot of new and important data. The opportunity cost, feasible points of production, and efficient and inefficient points of production can all be observed at th...

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